The problem has been all along that you know of the pieces in a puzzle but you don't know how to put them together.
The US is in no position to defend the dollar. With what?
Buy up the $US and pay with more new paper? They haven't got the reserves to make even one attack by selling someone's currency.
How on earth can they sell the yuan, while China has a trainload of US Bonds.
Al they can do is to go with cap and hand and say please. And Japan is fearful of a low $US of course. But for how do they want to buy useless $US?
The Central Banks are still supporting the $US, because not to do so will devalue their massive holdings of US paper and derivatives. (I said "still" but no doubt they will decrease their exposure, given time).
It is a soup there alright!
Please tell me where I can get oil at $25 per barrel. I want to on-sell a few million barrels at $56/barrel. They tell me you are the person to see.
Gerry
He ma, look there: the Chinese want to buy the White House! (GS)
